Podravka (PODR) Q2 2024 earnings summary

Executive summary

• Sales revenues increased by 9.9% year-over-year to EUR 380.4m, with growth in both Food and Pharmaceuticals segments.

• Normalized net profit after minority interests rose 49.2% to EUR 38.8m, driven by higher profitability in both segments.

• Major investments included new pasta and tomato processing plants, bakery modernization, and logistics center construction.

• Podravka was selected as preferred buyer for several Fortenova Group agricultural companies, aiming to create a new business pillar.

• Dividend per share increased 21% to EUR 3.20, with a 2.0% yield based on end-2023 share price.

Financial highlights

• Group gross profit increased 21.8% to EUR 148.9m, with gross margin up 384 bp to 39.1%.

• EBITDA rose 36.2% to EUR 65.8m; normalized EBITDA margin improved to 17.4%.

• Reported net profit after MI decreased by 11.0% due to one-off tax incentives in 2023; normalized net profit margin after MI increased to 10.2%.

• Total assets grew 5.3% to EUR 554.8m; property, plant, and equipment up 11.5%.

• Normalized earnings per share grew 26.7% to EUR 8.5.

Outlook and guidance

• Expected capital expenditures for 2024 are nearly EUR 90.5m.

• Ongoing investment cycle aligned with business strategy through 2025, focusing on modernization, technology, and sustainability.

• Acquisition of Fortenova Group agricultural companies expected to expand business scope and create a third business pillar.

• Continued investments in renewable energy, irrigation, and digitalization to drive efficiency and competitiveness.